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ELRCAllowedCause No 7 of 2018· [2023] KEELRC 1431 (KLR)

Nguru v Buds and Blooms Limited (Cause 7 of 2018) [2023] KEELRC 1431 (KLR)

Employment and Labour Relations Court
13 June 2023
HWHellen Wasilwa
2,547 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court paused enforcement of a judgment against Buds and Blooms, but only if the company deposits the full amount within 60 days.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court determined a Notice of Motion dated March 23, 2023 by Buds and Blooms Limited, the judgment debtor in an employment dispute, seeking stay of execution of the judgment and decree delivered on September 20, 2022 in favour of the claimant, Samuel Nguru, pending the hearing and determination of Nakuru Court of Appeal Civil Appeal No. E015 of 2023. The applicant relied on Order 42 Rule 6 of the Civil Procedure Rules, arguing that the appeal was arguable, that the application was brought timeously, that the claimant was a man of straw unable to refund the decretal sum, and that it was willing to furnish security. The claimant opposed the application as an afterthought and a delay tactic, noting that a prior review application had been dismissed, that the applicant had relied on inapplicable procedural rules, and that his own net worth exceeded the decretal sum, so refusal would not render the appeal nugatory; he alternatively sought a conditional stay with security of Kshs 150,000. Both parties filed detailed submissions citing numerous authorities on substantial loss, delay and security. In a brief ruling, Justice Hellen Wasilwa noted that an appeal was pending, found that refusal of stay would render the appeal nugatory, and allowed the stay on condition that the entire decretal sum be deposited within 60 days in an interest-earning account in the joint names of counsel on record, failing which execution may proceed. No costs order was made.

Key legal issues

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01

Whether the conditions for stay of execution pending appeal under Order 42 Rule 6 were satisfied

Holding

The court found that an appeal was pending and that refusal of stay would render the appeal nugatory, and granted stay conditioned on deposit of the decretal sum as security.

Reasoning

The court noted the applicant had already filed an appeal which is pending before the Court of Appeal. It reasoned that if stay orders were not granted, the appeal would be rendered nugatory. It therefore exercised its discretion to allow stay, but on condition that the entire decretal sum be deposited within 60 days in an interest-earning account in the joint names of counsel, with execution to proceed in default. The ruling is extremely brief and does not analyse substantial loss or delay.

p. 5

Legal principles established

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  • Stay of execution pending appeal may be granted where an appeal is pending and refusal would render the appeal nugatory, on conditions including security.

Court orders

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  1. 1.Stay of execution of the judgment and decree pending the hearing and determination of Nakuru Court of Appeal Civil Appeal No. E015 of 2023, on condition that the entire decretal sum is deposited within 60 days in an interest earning account held in the joint names of counsel on record
  2. 2.In default of the deposit, execution may proceed

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 3
  • Employment and Labour Relations Court ActSection 12(4)
  • Employment and Labour Relations Court ActSection 13
  • Civil Procedure Act (Cap 21 Laws of Kenya)Sections 1A, 1B, 3A
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Civil Procedure RulesOrder 51 Rule 1
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rules 17 and 32

Cases cited (10)

  • Housing Finance Company of Kenya v Sharok Kher Mohamed Ali Hirji & another
    [2015] eKLR
  • Butt v Rent Restriction Tribunal
    [1979] eKLR
  • Philip Mutinda v Lady Lori (K) Limited
    [2021] eKLR
  • Nicholas Stephen Okaka & another v Alfred Waga Wesonga
    [2022] eKLR
  • James Wangalwa & Another v Agnes Naliaka Cheseto
    [2012] eKLR
  • HGE v SM
    [2020] eKLR
  • Arun C Sharma v Ashana Raikundalia t/a A Raikundalia & Co Advocates & 2 others
    [2014] eKLR
  • Michael Ntouthi Mitheu v Abraham Kivondo Musau
    [2021] eKLR
  • RWW v EKW
    [2019] eKLR
  • Gianfranco Manenthi & Another v Africa Merchant Assurance Company Ltd
    [2019] eKLR
Jurisdiction invoked
Section 3 of the Employment and Labour Relations Court Act; Sections 1A, 1B, 3A of the Civil Procedure Act; Order 42 Rule 6 and Order 51 Rule 1 of the Civil Procedure Rules; Rules 17 and 32 of the Employment and Labour Relations Court (Procedure) Rules, 2016

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Nguru v Buds and Blooms Limited (Cause 7 of 2018) [2023] KEELRC 1431 (KLR)", Case Analysis (2023). Cause No 7 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1431/eng@2023-06-13

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.